Bengaluru hotel owners threaten to suspend online food delivery services from August 15 over billing disputes
Bengaluru hotel owners have threatened to suspend partnerships with online food delivery platforms starting August 15 due to disputes over billing transparency and arbitrary deductions. The association is demanding clearer itemization of charges and a voluntary opt-in system for promotional campaigns.
Why it matters
This highlights the growing friction between traditional small businesses and the digital gig economy platforms regarding fair trade practices.
Hotel owners in Bengaluru have threatened to discontinue their partnership with food delivery platforms from August 15, pointing at arbitrary deductions, payment settlements, and unrelated advertising charges that they say have eroded restaurant earnings.
The Bangalore Hotels Association (BBHA) said these platforms have been deducting money towards advertisements — including Cost Per Click (CPC), Cost Per Acquisition (CPA) and promoted listings — without obtaining prior written or digital consent from restaurant owners. It argued that enrolment in such promotional campaigns should be strictly voluntary and based on explicit approval.
The association has also sought a one-click opt-out mechanism, enabling restaurants to withdraw from paid promotions at any time without incurring further charges.
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